CFPB stripped of enforcement powers in lending discrimination

[gdale6]

"The Trump administration has stripped enforcement powers away from Consumer Financial Protection Bureau office that specializes in pursuing cases against financial firms accused of breaking discrimination laws, according to two people familiar with the matter and emails reviewed by The Washington Post."

Please remember all comments on the article must be apolitical.

https://www.washingtonpost.com/news/business/wp/2018/02/01/trump-administration-strips-consumer-watc...

[pipeguy]

In typical Washington Post style, the headline and intro text attempts to make a political hit. Without discussing the point-counterpoint of this article, which I admit I think its flawed if you read the whole article and sift through the facts versus the hype of the intro, as I've posted many times on MyFico the flaw in the CFPB is that it is unaccountable to Congress and operates outside the general financing and/or review of oversight. Financing comes through the Federal Reserve and their director can do just about anything he/she pleases as far as action, fines, etc. Note that you can't be "stripped of enforcement powers" when the CFPB operates outside oversight. 

I made a point about this not too long ago concerning the CFPB original director and how those same "powers" would transfer to a new director with the backing of a new administration and now it seems that the new director is getting grief with a different management style, but the same problem exists, the CFPB is not accountable. 

Note the article says no one lost their job, and the function of those employees will be merged into a different personnel division - then it tosses in examples of some past sins implying that its the wide west all over again due to the reorganization of duties. 

While even enforcement of fair loan interest rates should be a given based on colorblind lending standards, I don't see where this article makes the point that anything has changed in that regard.   

[Anonymous]

I think the point of not making the CFPB accountable to Congress was to remove it from politics as much as possible. If it answers to Congress, then every time the party in power changes hands, there will be constant tumult, not to mention the political football it would become. How it effectively advocate for consumers that way?
That was it's ultimate goal after all, to in some small way balance the scale a little for consumers. I think the worst thing that could happen for CFPB would be to make it accountable to congress. I'm disturbed by what I see as a concentrated effort to weaken the CFPB in recent months.

[pipeguy]

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wrote:
I think the point of not making the CFPB accountable to Congress was to remove it from politics as much as possible. If it answers to Congress, then every time the party in power changes hands, there will be constant tumult, not to mention the political football it would become. How it effectively advocate for consumers that way?
That was it's ultimate goal after all, to in some small way balance the scale a little for consumers. I think the worst thing that could happen for CFPB would be to make it accountable to congress. I'm disturbed by what I see as a concentrated effort to weaken the CFPB in recent months.

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I could show how the CFPB has abused its so-called purpose, but I'm not going to debate the purpose and politics in this thread (for many reasons, not the least being MyFico forum rules).  I'll just say that all agencies need to be accountable to oversight, and in the US Government, that means Congress. Without oversight, "political winds" will rule behavior and that does not benefit the core mission of any agency and I think we agree on that point.